SEC to Use Info From Investors to Stop GRAM ICO

The regulator’s lawsuit against the company does contain info that was not supposed to be divulged
15 October 2019   634

In preparing the lawsuit against the Telegram Open Network (TON), the US Securities and Exchange Commission (SEC) relied heavily on information received from project investors, CoinDesk reports.

This was confirmed to the Internet publication by the CEO of HASH CIB, Yakov Barinsky, who advised some of the funds that invested in TON. According to him, in September, the regulator contacted the American investors of the project and requested information about the data that was provided to them for its promotion.

I know that the SEC reached out to them asking how the deal was arranged, what information TON shared, what documents have been circulated and whether there was any omission of information.
 

Yakov Barinsky

CEO, HASH CIB

The regulator’s lawsuit does contain information that was not supposed to be divulged. In particular, the SEC cites “a presentation for a single investor from the US in January 2018.” To attract him, “Telegram talked about his“ high-level technical service ”and“ the possible return on investment in 0x-50x ”.

SEC used the information received to substantiate the conclusion that during the Gram token sale the placement of unregistered securities.

$27.5 million worth of Grams in early 2018 for tokens that had no use and would have no use at the time of launch, demonstrating its intent to profit from the potential increase in value of Grams.
 

SEC

It was probably investor evidence that enabled the SEC to classify Gram as a security. According to the Howie test, the regulator received confirmation of the fact of investments and expectations of profit from them. In addition, the funds are invested in a regular enterprise and the size of the possible profit does not depend on the efforts of the investor.

However, two other TON investors interviewed by CoinDesk said they were not promised a “0x-50x return.” Such inconsistencies in disclosed information could be another alarm to the SEC.

 

Scam ICOs Founder to Go In Jail For 1.5 Years

Maxim Zaslavsky from New York aws found guilty in launching 2 fraudulent ICOs which raised $2.8M in total
19 November 2019   201

Brooklyn-based 39-year-old Maxim Zaslavsky, who was found guilty of fraud in organizing two ICOs, was sentenced to 18 months in prison. This was reported by the attorney of the Eastern District of New York.

Zaslavsky and his associates deliberately misled about 1,000 investors that the REcoin cryptocurrency they created was backed by real estate investments in developing countries. During the ICO, they managed to raise $ 2.8 million.

In August 2017, a Brooklyn entrepreneur launched a second cryptocurrency, calling it Diamond Reserve Coin, which was supposed to be provided with diamonds.

The total amount that victims invested in these fraudulent ICOs will be determined later.

In November 2018, Zaslavsky pleaded guilty and, according to his lawyer, was ready to return the money to investors, but his accounts were blocked.